So I will be showing you guys how to make a custom sprite folder icon like the one shown here:

Required Materials: - Image Editor of your choice. I use The GIMP. Just make sure it supports transparency along with layers!

- Something to convert your image into an ICO file. (Icon file, if ya didn't know.) For this I use ConvertICO.com because you don't have to download anything. Just upload the file and it'll convert for you and make it available to download.

- Download these files. They are the layers for the Windows 7 Folder. BottomLayer & TopLayer - Sprite sheet of your choice that contains the sprite you want to use. For this tutorial I will be using Sonic from Sonic Advance 3!

OK, let's get started!

First you want to open up the "BottomLayer" folder pic and then then the "TopLayer" pic. Make sure they are on separate layers and align them so that they overlap like below.

It's really easy to do this with the GIMP because all you have to do is open your "BottomLayer" folder pic and then open as layers the "TopLayer" folder pic and it will automatically overlap perfectly. Once this is done, do not move those two layers!

Next you want to open up your sprite sheet in the GIMP. After you've opened it up, select which pose (sprite) you would like to use for your custom folder icon.

I like this one, so I will chose this one. Next, you want to copy your pose and paste it into the other window. To do that just copy your sprite and when you go to the other window click "Paste as New Layer" in the Edit menu. After that is done use the Move Tool to move the sprite to the center area of the canvas. Also, move your newly created "Clipboard" Layer between the top layer and the bottom layer. You should end up with this...

Now we need to re-size Sonic and have him face the other way. How ever you wish to have your sprite is up to you! So first I will make him face the other way by going up to the "Layer" menu then going to "Transform" and finally clicking "Flip Horizontally." Easy as pie. Now we need to re-size Sonic so that he is actually visible when this is used as an icon.

Ok, this part can turn ugly if you don't follow exactly as planned!! To Re-Size Sonic we need to use the "Scale Tool." However, before we rescale Sonic we need to change one setting first. So select the "Scale Tool" then go down to the "Tool Settings Menu." Find the drop-down box labeled "Interpolation" and set it to "None."

After that just click on Sonic with the "Scale Tool" and rescale to the appropriate size. To do this, I usually just multiply the original height or width by 5 or 6 and replace the original value with the new value. So for example, Sonic's original width in the sprite I chose is "36." I multiply "36" by 5 and come up with "180." So now 180 is the new width for Sonic's sprite.

So this:

Changes to this:

It's very important that those chains are linked together and not separated also.

So after that, just grab the "Move Tool" once more and move Sonic, or whatever sprite you are using, to where you want.

And now you have made your custom sprite folder icon. Now you want to export that as an PNG and convert it to an ICO file somehow. After you have converted it into an ICO file you need to store it somewhere and remember where you store it. I put mine in the "My Pictures" folder. Now, find you folder where you keep all of your sprite resources and right click it and go to "Properties."

Then go to "Customize."

Now hit "Change Icon" When you hit "Change Icon" the window below should pop up.

Do not fret. Go to Browse and find where you stored your ICO file.

Yay! There it is! Now, just click on it, then hit "OK" and that window will close. Then hit "Apply" and then "OK" and that window will close as well.